The fee applies only to credit cards, not debit or prepaid cards. Retailers must disclose surcharge fees on every receipt – both in-store and online – and they can offer a discount for cash and check purchases.

The change in surcharges is the result of a settlement following a 2005 lawsuit between a group of retailers and MasterCard, Visa and other financial institutions.

The retailers claimed those groups conspired to fix the added charges.

The checkout fee is no longer banned in 40 states, but it is still illegal in New York and Connecticut.